In the wake of the tragic Haiti earthquake, you may wonder what would happen if an earthquake struck closer to home.  Would your homeowner’s insurance policy cover your home if it was destroyed by an earthquake?  For most homeowners, the answer is “no.”  Unfortunately, the standard homeowner’s insurance policy excludes earthquake losses.  Similar to a flood risk, earthquake is considered too high of a risk to be covered by standard rates.

Liberty Mutual is one of the few companies that offers earthquake insurance in Hawaii.  However, very few of our policyholders choose to add this coverage to their policies.  The premium is quite expensive and the deductible is very high.

Read the following article for safety tips and more on earthquake insurance:

Consider Buying Earthquake Insurance

Images of desperation and despair continue to pour out of Haiti in the wake of its devastating earthquake last month, killing over 200,000 people and directly impacting over 3 million of its people. This earthquake also serves to remind Americans of their exposure to this peril as well. Records dating back to 1900 reveal that earthquakes have occurred in all 50 states and caused damage in 39 of these states. The Federal Emergency Management Agency (FEMA) released a major study in 2000 indicating that U.S. earthquake losses over time could average $4.4 billion a year.

So the following question naturally arises: what is your exposure to an earthquake? Research indicates that residents in California, Oregon, and Washington are most at-risk. However, parts of Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri, and Tennessee are also quite exposed to earthquakes. The New Madrid Seismic Zone runs under these states and, though it occurred long ago, gave rise to one of the largest magnitude earthquakes to ever hit the United States.

If you live in any of these states, you should ascertain your proximity to an earthquake fault zone. California residents can determine their exposure by visiting the State of California’s Department of Conservation Web site, which provides a list of affected cities and counties. For other state-specific information, visit the U.S. Geological Survey Web site.

Most homeowners policies specifically exclude earthquake losses, just as they do flood losses. Therefore, if you live near an earthquake seismic zone, consider purchasing a separate earthquake policy or an earthquake endorsement attached to your homeowners policy. In addition, the following are some steps to take that will reduce your chances of injury or property damage resulting from an earthquake.

• Verify that operational fire extinguishers are strategically located on each floor of your home.
• Anchor tall furniture, refrigerators, water heaters, and bookcases securely to the walls.
• Utilize flexible connectors for gas supply to gas-fueled appliances.
• Keep beds away from glass or any hanging object that might fall.
• Verify that your home’s roof and chimney are well-maintained, with proper support.
• Apply safety film to windows and glass doors.
• Add anchor bolts or steel plates between the home and its foundation.
• For older homes, work with a civil engineer or city building department to verify that your home is up to code for the earthquake peril.
• Communicate to family members an emergency meeting place should your family get separated during an earthquake.

If you are in your home when an earthquake occurs, stay inside and move away from windows, skylights, doors, and objects that might fall. Crawl under a sturdy item such as a large table or desk.  Stay where you are until the shaking stops.

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2010
International Risk Management Institute, Inc.

If you haven’t noticed, Oahu’s “second city” of Kapolei is booming!  Consider the numbers.  Homes is Kapolei in 1990 – 11,722.  Homes in Kapolei projected in 2025 – 56,710.  Kapolei’s population in 1990 – 42,983.  Kapolei’s projected population in 2025 – 172,000.

The numbers speak for themselves.  But if you’ve gone to Kapolei in the past couple of years, you can see the development.  This past year, Costco opened their Kapolei store.  And right on their heels was the opening of Kapolei Commons with Target, Petco, Sports Authority, Office Max, Ross, Price Busters and many more.  There’s further retail development planned for Kapolei to add to the existing retailers such as Long’s, Safeway, Home Depot, Consolidated Theaters and many more.  Plus, there are all the eateries such as McDonald’s, Burger King, Taco Bell, Zippy’s and a host of others.  There’s even more retail development planned with two more shopping centers to break ground soon.

All this with the planned completion of the Disney Resort in Ko Olina and the opening of the Kapolei Court Complex in 2010.  Yes, Kapolei is definitely taking steps to become Oahu’s second city.  Even my company, Liberty Mutual, has been eyeing spots to open an office.  In the meantime, we’ve been doing a lot of business in Kapolei through our nearby Pearlridge office.

It’s exciting to see how Kapolei has developed, and even more thrilling to think of where the city is going.

Texting and Driving

A couple of weeks ago, Liberty Mutual released some new tips on safe driving.  Each tip was accompanied by a short video clip.  Check out the link above to view the video.

Hawaii recently passed a law that prohibits using a cell phone or similar devices while driving.  When the law was passed, I saw some interviews on the news asking for the publics’ opinion.  Before the law was passed, I would occasionally use my cell phone while driving.  And I admit, it was difficult driving and dialing a number at the same time!  I couldn’t believe that some younger drivers could drive and text at the same time.  But then I saw another interview where the texter could text quickly and accurately, without even looking at her phone!  I made me realize that you could text and drive if you’re good at texting.  Still, as the video shows, even a moment’s distraction can be dangerous.

During the week of June 2nd to the 6th, I had the opportunity to visit the city of Boston, MA. Although this was a business trip, I did have the pleasure of enjoying the sights and cuisine of Boston.

Why Boston? Well, I work for an insurance company called Liberty Mutual Insurance. Liberty Mutual is a national insurance company established in Boston in 1912. Liberty Mutual is the fifth largest property and casualty insurance company in the United States. What’s property and casualty insurance? Property and casualty insurance encompasses a lot of different types of policies, but you’re probably familiar with the property and casualty insurance that I sell — auto insurance and homeowner’s insurance.

I was hired by Liberty Mutual about five years ago. Once you reach a certain volume of sales, the company sends you to their home office in Boston. It’s kind of a “thank you” trip and a chance to meet the home office staff. I was lucky that one of my co-workers from Hawaii also qualified for the trip. Otherwise, the rest of our “class” was comprised of people from other states: NY, CT, GA, and WA. It was nice to have someone I knew with me to check out the city.

We arrived in Boston on Sunday around noon, so we had the whole afternoon to check out the city. We decided to check out the Freedom Trail, since someone had recommended it to us. The Freedom Trail was not the kind of trail that I was thinking of. Rather, it was a walk through the city of Boston following a red trail of bricks that are built into the sidewalks.

I had never been to Boston before, so I didn’t know what to expect. What I found as we followed the Freedom Trail, was a city rich with history. The trail starts at the Boston Commons, where witches and criminals were tortured and hanged in public. We went past the City Hall which is still used today. We went past graveyards where some of our forefathers are buried. We also passed places like Paul Revere’s childhood home and the church where he announced that the British were invading (one lamp if by land and two if by sea). We enjoyed lunch and shopping at Quincy Marketplace, a huge hall full of eating places and shops. We both had a lobster roll along with clam chowder to test the local cuisine — both were ono. The trail ended at Bunker Hill, where the British were finally defeated. Like I said, the city is rich with history. I would like to bring my kids back when they start learning about American history. It certainly makes a difference when you’re actually there.

The rest of the trip was mostly at our home office during the days. During the evenings, we had more chances to discover Boston. We turned down a chance to check out a Red Sox game (which we regretted later). We had dinner at Legal Seafood, which was originally established in the 1800s. We were hoping to be in Boston for game 1 of the NBA championship. Unfortunately, we left for Portsmouth, NH on Wednesday evening. Our life insurance company’s home office is located in Dover, NH. Still, we got to check out the game at a local bar — go Celtics!